JADI TO SELL ITS PROPERTY

Malaysia-based toner manufacturer Jadi Imaging Holdings Bhd has decided to sell its freehold land as well as a detached factory-cum-three-storey office in Shah Alam.

According to klsescreener.com, the deal is predicted to be RM23 million (US$5.36 million). The company is said to have already entered into a sale and purchase agreement (SPA) with Tropical Fairyland Sdn Bhd.

Jadi claims that the money generated from the deal will be used for “bank borrowings repayment, working capital, estimated real property gain tax payable pursuant to the proposed disposal and defray estimated expenses relating to the proposed disposal.”

“The proposed disposal will enable Jadi Group to generate immediate cash flow and repay part of the group’s bank borrowings, which will reduce the gearing level of the group,” said Jadi Imaging.

The company also added, “This will also result in interest savings and provide financial flexibility to the group to secure additional borrowings should new investment opportunities arise.”

In addition to this, Jadi Imaging claims that the deal is expected to be completed by the fourth quarter of 2017.

Jadi Imaging shares remained at an unchanged closing price of 6.5 sen (US$ 0.02), with a market capitalization of RM61.22 million (US$14.25 million).